Backgrounder

Labor now part of Prabowo’s big coalition government

With little fanfare, Indonesia's labor movement has joined President Prabowo Subianto's big coalition government, giving it an inside track in the corridors of power to fight for its interests. Although some might argue that it has been co-opted to blunt the movement.

Indonesia’s digital tightrope: Between safety and free speech

Prabowo’s plan to slash ride-hailing commissions raises sustainability concerns

President Prabowo Subianto's push to slash ride-hailing platform commissions has sparked growing concerns over the sustainability of Indonesia's digital economy. The government plans to reduce the commission charged by ride-hailing applications from 20 percent to just 8 percent, a move that is tied to plans by Danantara to acquire a stake in PT GoTo Gojek Tokopedia (GOTO). The arrangement would place the state-backed investment body in a direct position to influence decisions within the company. The policy was later formalized through Presidential Regulation (Perpres) No. 27/2026, giving legal backing to what amounts to a major state intervention in Indonesia's digital economy.

Edition

May 1, 2026

Cabinet reshuffle No. 5: Prabowo’s political recalibration

President Prabowo Subianto has reshuffled his cabinet for the fifth time just 18 months into his term. While the frequent adjustments may ostensibly reflect an effort to bolster effective governance, they also signal a state of perpetual political recalibration and unsteady organizational cohesion.

Domestic worker law addresses but won’t end modern slavery

Toll road VAT, EV disincentive: Short-term revenue, long-term losses

As the government seeks to shore up fiscal stability amid slowing tax revenue and rising spending pressures, it is turning to controversial new revenue measures, including imposing VAT on toll roads and removing tax exemptions for EV. These policies could slow adoption even as the country pushes electrification to reduce reliance on costly fuel imports.

Edition

April 24, 2026

Overflight dilemma: Between sovereignty and security

Indonesia is facing mounting scrutiny over a United States proposal to introduce a notification-based overflight arrangement. As policymakers weigh strategic cooperation against legal consistency and long-standing non-alignment, the decision may ultimately redefine Indonesia's position within an increasingly contested Indo-Pacific security landscape.

Why the news spotlight on ex-VP Jusuf Kalla?

Fiscal stability at risk amid rising energy costs

Indonesia's fiscal position is coming under increasing pressure as global energy prices rise. Early fiscal data already signals strain, with the budget deficit reaching 0.93 percent of gross domestic product - about a third of the 3 percent ceiling - within the first three months of the year. The abrupt reshuffle of key budget officials at the Finance Ministry has further added uncertainty at a time when policy consistency is crucial.

Edition

April 17, 2026

Elites bargain behind NasDem-Gerindra ‘merger’ talks

It is hard to conceive of a national political landscape without constant maneuvering among political parties, trying to shape its direction. Recent speculation over a potential unification of the NasDem Party and Gerindra Party has brought a recurring question to the forefront: Do parties function as institutional channels of representation, or have they become mere instruments of elite bargaining?

Government going after ‘unpatriotic’ critics, by almost any means

Govt pushes revocation of “questionable” mining permits in forest areas

President Prabowo Subianto on Apr. 8 instructed the accelerated revocation of hundreds of "questionable" mining business permits (IUPs) within a one-week deadline, a move that raises concerns over rushed implementation. The directive comes in the aftermath of severe flooding in Sumatra in December, widely linked to environmental degradation exacerbated by natural resource extraction. While the policy could curb illegal mining and deforestation, its effectiveness will depend on follow-up actions and careful execution.